The Analysis of The Relationship Between Unemployment And Inflation In Turkey By Var Model

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Journal of New Results in Science
Volume:4 Issue:8
The Analysis of The Relationship Between Unemployment And Inflation In Turkey By Var Model

The Analysis of The Relationship Between Unemployment And Inflation In Turkey By Var Model

Authors : Gülistan ERDAL, Hasan Gökhan DOGAN, Gungor KARAKAS

Pages : 22-29

View : 27 | Download : 12

Publication Date : 2015-05-29

Article Type : Research Paper

Abstract :– The main point of this study is to analyse the relationship between unemployment and inflation in Turkey. The study investigation period is the years between 1988 and 2002. Vector Autoregressive Model insert ignore into journalissuearticles values(VAR); and impulseresponse analysis are used in the study to explain the relationship. According to the results, there is a negative way relationship between unemployment and inflation. This result is a supportive of Philips curve. This conclusion is important for stating an optimal inflation target and therefore obtaining a natural unemployment rate
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